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HomeMy WebLinkAbout03 - Grant to Address Alcohol-Related ProblemsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 3 June 22, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: POLICE DEPARTMENT Bryan Moore, Detective, 949,644-3725, bmoore @nbpd.org Dennis Birch, Lieutenant, 949 644- 3778, dbirch @nbpd.org Robert Luman, Chief of Police, 949.644-3701, rluman @nbpd.org SUBJECT: ACCEPTANCE OF THE CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL 2010/2011 GRANT TO SUPPLEMENT THE POLICE DEPARTMENT'S ONGOING EFFORT IN ADDRESSING ALCOHOL- RELATED PROBLEMS AT RETAIL ALCOHOL ESTABLISHMENTS RECOMMENDATION: 1. Accept the . California Department of .Alcoholic Beverage Control (ABC) 2010/2011 Grant, Assistance Program (GAP) Grant Award in the total amount of $26,318 to supplement the Police Department's .ongoirig. effort in addressing alcohol- related problems at retail alcohol establishments. 2. Authorize the Administrative Services Director to establish revenue and expenditure accounts in the General Fund to facilitate the administration of these funds. 3. Approve the attached Resolution, accepting the GAP. Grant Award on behalf of the City: DISCUSSION: Background: The ABC Liaison Officer position was created in July of 2008 as part of a $100,000 grant awarded to the Police Department by the Department of ABC. This position proved to be so effective in handling the City's ABC matters, that the Department made it a permanent assignment 'within the Vice and Intelligence Uhit,,..in- the Detective Division. ABC Program Grant June 22, 2010 Page 2 The position has addressed numerous issues with the City's ABC licensed establishments, and it has significantly fostered the working relationship between the Police Department and other City departments. Most importantly, the interaction with the State's Department of ABC has been invaluable. In 2009, the Police Department made a total of 3,688 arrests. Of those, 1,291 were alcohol related — 540 for driving under the influence and 730 for public intoxication — which amounts to over 30% of the year's total arrests attributed to the consumption /over consumption of alcoholic beverages. Although these numbers have declined since the ABC Liaison Officer position was created, they still represent an enormous drain on Police resources and justify why the City's alcohol - related issues remain a top priority for local officials. The ABC Liaison Officer is currently addressing these issues by working closely with City Planning personnel to impose conditional use permit conditions for new businesses. These conditions are specifically targeted towards preventing alcohol - related problems and working in unison with the conditions imposed on the alcoholic beverage license by the Department of ABC. The ABC Liaison Officer has also focused on Community outreach to maintain an open Fine of communication with the owners /operators of local retail alcohol establishments. The ABC Liaison Officer is currently tasked with facilitating quarterly meetings for tavern owners as well as responsible beverage service training for the local restaurants, bars, and off -sale locations. These efforts have provided the owners /operators of these establishments invaluable training and information, which allows them to stay current on important topics that may affect their business. Although these proactive measures are in place, the Police Department has found that regular enforcement efforts are perhaps one of the most important components to maintaining compliance among local retail alcohol establishments. Since the last ABC grant was issued in 2008/2009, the Police Department has continued to utilize ABC enforcement strategies, such as minor decoys and shoulder tap operations, to monitor the sale /furnishing of alcoholic beverages to minors. The Police Department has also spent a considerable amount of time conducting undercover operations that target minors, as well as ABC and City use permit condition violations. Enforcement operations have been very successful in identifying and addressing problem locations within the City. Additionally, it has given the Police Department/ABC Liaison Officer the opportunity to work closely with the City Attorney's Office and the Department of ABC to bring problem locations into compliance. However, despite the Police Department's ongoing efforts, the fact remains that one -third of all arrests made in the City during 2009 were alcohol related. ABC Program Grant June 22, 2010 Page 3 Upon closer review of these arrests, it is evident that much of the problem can be attributed to the over service /over consumption of alcoholic beverages at on -sale licensed establishments. Another problem identified by the Police Department as a significant contributor to calls for service and alcohol - related arrests are City use permit and ABC condition violations. This problem tends to move from location to location depending on the current trend and requires the Police Department to allocate significant time and personnel to complete the necessary investigations. Proposal: This is not a request to add any additional personnel to the Department. Currently, the full -time ABC Liaison Officer position is staffed by Detective Bryan Moore, who is assisted by two full -time Vice and Intelligence Investigators. The ABC grant funds would allow for necessary overtime for the assigned personnel to commit to the proposed ABC operations outside of their existing duties and heavy caseload. The proposed project aims to utilize ABC enforcement strategies to address the City's alcohol - related issues as they pertain to over service, minors, and City use permit/ABC condition violations. It is the intent of the Police Department to have the ABC Liaison Officer work closely with an assigned Grant Assistant Program (GAP) Investigator to coordinate and fulfill the following objectives: • Based on statistics, crime /arrest reports, and other gathered intelligence, the ABC Liaison Officer will identify on -sale establishments that were the "location of last drink" and organize four "obviously intoxicated (OI)" taskforces to target over serving. Each taskforce will consist of at least two, two- person teams and will target several predetermined establishments. • The ABC Liaison Officer will facilitate four undercover operations, which will target establishments where reports of ABC /City conditional use ` permit violations have contributed to Police- related activity /calls for service. The operations will also focus on any other problem that may be the result of a current trend. • The ABC Liaison Officer will facilitate four trap door operations to target minors who are either attempting to purchase alcohol or trying to enter a bar or nightclub with a false ID. During the operation, the officers will work directly with employees of ABC licensed establishments to detect and then cite the person in possession of the false ID. • The ABC Liaison Officer will conduct four minor decoy and/or shoulder tap operations to address problems related to underage drinking. ABC Program Grant June 22, 2010 Page 4 • The ABC Liaison Officer will utilize uniform patrol personnel to conduct four saturation patrols at various licensed establishments throughout the City. These patrols will provide a high visibility presence as they conduct "bar checks" for ABC - related violations. The patrols will take place during the busy summer months and each will consist of two uniformed officers who will be briefed /trained on ABC laws and enforcement procedures. • The ABC Liaison Officer will organize two responsible beverage services ,sessions, by a certified Training for Intervention Procedure Service (TIPS) instructor, in which the owners/ operators, managers, and employees of local ABC licensed establishments will be provided with free training on alcohol responsibility and the law. • The ABC Liaison Officer will facilitate two media campaigns to promote the enforcement and education efforts being made towards alcohol responsibility. • The ABC Liaison Officer will coordinate one warrant taskforce, which will focus on the arrest/apprehension of suspects wanted for local alcohol- related violations. It is anticipated that the proposed objectives will result in a reduction of alcohol - related crimes associated with the City's retail alcohol establishments. Therefore, the Police Department believes that these efforts are essential to promote an environment that protects the health, safety, and welfare of the Community. Funding Availability: The California Department of Alcoholic Beverage Control, 2010/2011 Grant Assistance Program (GAP) Grant ($26,318.00). No matching funds are required for this grant. Submitted by: Dennis Birch, Lieutenant Detective Services Commander Attachments: Resolution Department of ABC Contract Approved by: Robert M. Luman CHIEF OF POLICE RESOLUTION NO. 2010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE ACCEPTANCE OF THE CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL ( "ABC ") FY 2010/2011 GRANT ASSISTANCE PROGRAM ( "GAP ") GRANT AWARD AND AUTHORIZE THE CITY MANAGER AND CHIEF OF POLICE TO ACT AS "AUTHORIZED AGENTS" TO EXECUTE ON BEHALF OF THE CITY ANY ACTIONS NECESSARY TO OBTAIN NECESSARY FUNDS FROM THE ABC FY 2010/2011 GAP GRANT PROGRAM TO SUPPLEMENT THE POLICE DEPARTMENT'S ABC ENFORCEMENT PROJECT WHEREAS, the City of Newport Beach ( "City ") through its Police Department desires to continue to undertake that certain project designated as "ABC Enforcement Project" to be funded in part from funds made available through the FY 2010/2011 Grant Assistance Program ( "GAP ") administered by the California Department of Alcoholic Beverage Control ( "ABC "); NOW THEREFORE, BE IT RESOLVED as follows by the City Council of the City of Newport Beach: Section 1: Approve the Grant Agreement for FY 2010/2011 between the City and ABC attached hereto as Exhibit 1. Section 2: Authorize the City Manager and Police Chief to act as "Authorized Agents" with the authority to execute on behalf of the City any actions as they relate to the FY 2010/2011 ABC GAP Grant. Section 3: Grant funds received hereafter shall not be used to supplant expenditures controlled by this body. Section 4: Grant award is not subject to local hiring freezes. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. I hereby certify that the foregoing is a true copy of the resolution adopted by the City Council of the City of Newport Beach. ADOPTED this 22nd day of June, 2010. Keith Curry, Mayor ATTEST: Leilani Brown, City Clerk Attachment: Exhibit 1 STATE OF CALIFORNIA STANDARD AGREEMENT STD 213 (Rev 06103) AGREEMENT NUMBER IOG -LA22 REGISTRATION NUMBER 1. This Agreement is entered into between the State Agency and the Contractor named below: STATE AGENCYS NAME DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL CONTRACTOR'S NAME City of Newport Beach Through the Newport Beach Police Department 2. The term of this July 1, 2010 through June 30, 2011 Agreement is: 3. The maximum amount $ 26,318.00 of this Agreement is: 4. The parties agree to comply with the terms and conditions of the following exhibits which are by this reference made a part of the Agreement. Exhibit A - Scope of Work 4 page(s) Exhibit B - Budget Detail and Payment Provisions 3 page(s) Exhibit C'- General Terms and Conditions Check mark one item below as Exhibit D: Exhibit - D Special Terms and Conditions (Attached hereto as part of this agreement) FE-11 Exhibit - D` Special Terms and Conditions Exhibit E - Additional Provisions GTC 307 1 page($) page(s) Items shown with an Asterisk (), are hereby incorporated by reference and made part of this agreement as if attached hereto. These documents can be viewed at www.ols.dgs.ca.gov /Standard +Language IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. " CONTRACTOR Califamia Department of General Services Use Only CONTRACTOR'S NAME (# other than an lndividuat, state whethera corporation, partnership, etc.) City of Newport Beach Through the Newport Beach Police Department _ BY(Authodzed Signature) - DATE SIGNED(Do nor type) - PRINTED NAME AND TITLE OF PERSON SIGNING Robert Luman, Chief ADDRESS 870 Santa Barbara Drive Newport Beach, CA 92660 STATE OF CALIFORNIA AGENCY NAME Department of Alcoholic Beverage Control ®Exempt per. GC14616 BY (Aulhodzed Signature) DATE SIGNED(Do rrot type) PRINTED NAME AND TITLE OF PERSON SIGNING Ed Jimenez, Assistant Director, Administration ADDRESS 3927 Lennane Drive, Suite 100, Sacramento, CA 95834 I Agreement Number 10G -LA22 APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY i By: MyineiW D / ,auchamp Assistant F.it Attorney City of Newport Beach ATTEST: M Leilani I. Brown City Clerk City of Newport Beach Exhibit A SCOPE OF WORK Summary: The Newport Beach Police Department services the City of Newport Beach which is considered the coastal center of Orange County. The City covers an area of approximately 50 square miles and is comprised of distinct residential and commercial areas. These areas include: the Balboa Peninsula, Mariner's Mile, Balboa Island, Corona del Mar, Fashion Island and Newport Coast. Combined, these areas make Newport Beach one the most attractive destination resorts on the west coast. In addition to the City's full time resident population of approximately 86,000, summertime crowds can easily reach in excess of 100,000 with some estimates nearing the 200,000 mark. It is also common for the City's prominent eating and drinking establishments to be focal point for this additional summertime population. The Newport Beach Police Department provides the City with a full service law enforcement agency that is 142 sworn officers strong. These officers act under the direction of the Chief of Police. The department is divided into four divisions: Patrol, Traffic, Support Services and Detective Division. The Detective Division includes a Vice and Intelligence Unit which consists of a full -time ABC Liaison Officer and two Investigators. The Vice and Intelligence Unit is supervised by a Sergeant who also oversees the Narcotics Unit and Crime Suppression Unit. The ABC Liaison Officer position was created in July of 2008, as part of a $100,000 grant that was awarded (to the NBPD) by the Department of Alcoholic Beverage Control. This position proved to be so effective in handling the City's ABC matters that the police department made it a permanent assignment within the Vice and Intelligence Unit. The position has addressed numerous issues with the City's ABC licensed establishments and it has significantly fostered the working relationship between the police department and other City departments. Most importantly, the interaction with the Department of Alcoholic Beverage Control has been invaluable. As of February of 2010, there are 313 ABC licensed establishments in the City of Newport Beach. Of those, there are 243 "on -sale" licenses and 56 "off - sale "licenses (the remaining 14 account for non- retail licenses). According to a 2008 ASIPS /GIS (Alcohol /drug Sensitive Information Planning System in a Geographic Information System format) report, Newport Beach has an on -sale alcohol outlet population density three times greater than the statewide average, five times greater than Santa Ana and 1.5 times the density than neighboring Costa Mesa. Newport Beach's reputation as a premier destination resort certainly contributes to what many would call an 'over concentration" of retail alcohol establishments. Newport Beach has long been known for its fine restaurants and active night life which is a main attraction for many. These establishments are patronized by what is largely an affluent full time resident population as well as many college students, vacationers and day visitors alike. Although the City's alcohol establishments certainly enhance business and tourism, it is fair to say that they also create certain challenges for public safety. It is the Newport Beach Police Department's goal to work with the Department of Alcoholic Beverage Control, the City, as well as these establishments to create an environment that protects the health, safety and welfare of the community. Exhibit A The purpose of this proposal is to request $30,838 in grant assistance, from the Department of Alcoholic Beverage Control, for the project period of July 1, 2010 to June 30, 2011. The Newport Beach Police Department believes that these grant funds could be effectively utilized to enhance the on going efforts being made to address ABC matters in the City. The proposed project will address alcohol related problems such as over - service, minors and ABC condition violations at specific /identified retail alcohol establishments. To do so, the project will utilize the following ABC enforcement strategies: "OI" taskforces, Operation Trapdoor, Minor Decoys, Shoulder Taps and additional undercover /uniform operations to address minors and ABC condition compliance. Responsible Beverage Service (RBS) training and media campaigns will also be utilized. The objectives will be measurable and should result in a reduction of alcohol related crimes associated with the City's retail alcohol establishments. Problem Statement: In 2009 the Newport Beach Police Department made a total of 3,688 arrests. Of those, 1,291 were alcohol related with 540 of them for driving under the influence and 730 for public intoxication. That amounts to over 30% of the year's total arrests being attributed to the consumption /over- consumption of alcoholic beverages. Clearly, these statistics represent an enormous drain on police resources and justify why the City's alcohol related issues remain a top priority for local officials. One way the police department is currently addressing these issues is by working closely with City planning personnel to impose conditional use permit conditions for new businesses. These conditions are specifically targeted towards preventing alcohol related problems and work in unison with the conditions imposed on the alcoholic beverage license by the Department of Alcoholic Beverage Control. The police department has also put considerable focus on community outreach in order to maintain an open line of communication with the owners /operators of the local retail alcohol establishments. The ABC Liaison is currently tasked with facilitating quarterly Tavern Owners meetings as well as RBS training (TIPS) for the local restaurants, bars and off -sale locations. These efforts have provided the owners/operators of these establishments invaluable training and information which allows them to stay current on important topics that may affect their business. Even with these proactive measures in place, the police department has found that regular enforcement efforts are perhaps one of the most important components to maintaining compliance among the local retail alcohol establishments. Since the last ABC grant was issued in 200812009, the police department has continued to utilize ABC enforcement strategies such as minor decoys and shoulder tap operations to monitor the saletfurnishing of alcoholic beverages to minors. The police department has also spent a considerable amount of time conducting undercover operations that target minors as well as ABC and City use permit condition violations. These enforcement operations have been very successful in terms of identifying and addressing problem locations within the City. Additionally, it has given the police department/ABC Liaison the opportunity to work closely with the City Attorney's Office as well as the Department of Alcoholic Beverage Control to bring these problem locations into compliance. However, despite the police department's on -going efforts, the fact remains that one third of all arrests made in the City (for 2009) were alcohol related. Exhibit A Upon closer review of these arrests, it is evident that much of the problem can be attributed to the over service /over consumption of alcoholic beverages at on -sale licensed establishments. Specifically, at such Balboa Peninsula bars as the District, Baja Sharkee2, Cassidy's, Woody's Wharf, Class of 47 and Balboa Saloon. Many of the arrestees that were booked for drunk in public, assaults and DUI identified these establishments as the locations where they had been drinking prior to their arrest. Establishments like RED nightclub and Hogue Barmichael's also contributed to an inordinate amount of alcohol related arrests as well as violations involving minors. Another problem that has been identified by the police department as a significant contributor to calls for service and alcohol related arrests are ABC condition violations. Establishments like Ten Waterfront routinely violate a "no live entertainment" condition which is a constant source of citizen complaints and subsequent calls to the police department. Other locations like CODE Restaurant have been the source of extensive investigations, directed by the City Attorney's Office, for violations that pertain to quarterly gross sales and operating like a nightclub. This problem tends to move from location to location depending on the current trend and requires the police department to allocate significant time and personnel to complete the necessary investigations. Project Description: The proposed project aims to utilize ABC enforcement strategies to address the City's alcohol related issues as they pertain to over service, minors and ABC condition violations. It is the intent of the police department to have the ABC Liaison Officer work closely with an assigned Grant Assistant Program (GAP) Investigator to coordinate and fulfill the following objectives: Based on statistics, crime /arrest reports and other gathered intelligence, the ABC Liaison Officer will identify On -Sale establishments that were the "location of last drink" and organize four (4) "OI Taskforces" to target over - serving. Each taskforce will consist of at least two (2), two- person teams and will target several pre - determined establishments. The ABC Liaison Officer will facilitate four (4) undercover operations which will target establishments where reports of ABC /City CUP conditions violations have contributed to police related activity /calls for service. The operations will also focus on any other problem that may be the result of a current trend. • The ABC Liaison Officer will facilitate four (4) Trap Door operations to target minors who are either attempting to purchase alcohol or trying to enter a bar or night club with a false ID. During the operation, the officers will work directly with employees of ABC licensed establishments to detect and then cite the person in possession of the false ID. • The ABC Liaison Officer will conduct six (6) Minor Decoy and /or Shoulder Tap operations to address problems related to underage drinking. • The ABC Liaison will utilize uniform patrol personnel to conduct four (4) saturation patrols at various licensed establishments throughout the City. These patrols will provide a high visibility presence as they conduct "bar checks „ for ABC related violations. The patrols will take place during the busy summer months and each will consist of two uniformed officers who will be briefed /trained on ABC laws and enforcement procedures. Exhibit A The ABC Liaison will organize two (2) RBS trainings, by a certified TIPS instructor, in which the ownersloperators, managers and employees of local ABC licensed establishments will be provided with free training on alcohol responsibility and the law. The ABC Liaison will facilitate two (2) media campaigns to promote the enforcement and education efforts being made towards alcohol responsibility. The ABC Liaison will coordinate one (1) warrant taskforce which will focus on the arresUapprehension of suspects wanted for local alcohol related violations. Proiect Personnel: Currently, the full -time ABC Liaison Officer position is staffed by Detective Bryan Moore, who is a Master Officer III with the Newport Beach Police Department. He has successfully fulfilled the myriad of duties associated with this assignment since the position was established in July of 2008. These duties include: (1) coordinating all reports linked to ABC licensed establishments, (2) working with ABC licensing representatives on new applications, (3) community outreach and training police personnel, (4) attending City meetings for new ABC licensed establishments and recommending conditions of approval with respect to the alcoholic beverage service, (5) testifying at Planning Commission and City Council hearings regarding ABC establishments, and (6) all enforcement as it pertains to the sale and service of alcoholic beverages at retail alcohol establishments. Based on the prevalence of ABC establishments and alcohol related issues in the City, it is evident that there is a continued need for this position. in the City of Newport Beach. It is also fair to say, based on the duties listed above, that the ABC Liaison Officer has been a tremendous asset not only to the police department and the City, but to the Department of Alcoholic Beverage Control as well. To that end the police department feels that all of the stakeholders would greatly benefit if the existing program were enhanced by way of the Grant Assistance Program. Although the current ABC Liaison Officer has had the opportunity to become well versed in several ABC enforcement strategies, there are others (e.g. Trap Door, OI Taskforce, etc) which have not been used that could address some of the City's alcohol related issues. The Grant Assistance Program would allow the ABC Liaison to benefit from the training and direction of an experienced GAP Investigator .to coordinate and fulfill these objectives. In addition, the Grant Assistance Program would allow for much needed over -time that is necessary for the assigned personnel to commit to these ABC operations outside of their existing duties and heavy caseload. For the purposes of the grant, the ABC Liaison would utilize the two additional, full -time Vice and Intelligence Investigators (Brian Hass and Dave Stark) to perform the duties necessary to carry out the grant objectives. Both investigators are tenured officers with prior ABC related experience and would be an asset to the program. Even though the primary responsibility of the grant objectives would belong to the Vice and Intelligence Unit, the police department is prepared to allocate the personnel resources necessary (both uniformed and undercover) to fulfill the grant objectives. It is our ultimate goal, after all, to proactively deal with the City s alcohol related issues in order to protect the health, safety and welfare of the community. BUDGET DETAIL Exhibit B BUDGET CATEGORY AND LINE -ITEM DETAIL COST (Round budget amounts A. Personnel Services (straight time salaries, overtime, and benefits) to nearest dolla') A. I Straight Time 0 A.2 Overtime Three (3) Master (III) Police Officers for 242 hours @ $78.35 per hour $18,961 A.3 Benefits $3,792 Master (III) for 242 hours @ 15.67 (30% of $52.23) TOTAL PERSONNEL SERVICES $22,753 B. Operating Expenses (maximum $2,500) "Buy Money" for Shoulder Tap, Minor Decoy, "OP' and other undercover operations. TOTAL OPERATING EXPENSES $305.00 C. Equipment (maximum $2,500) (Attach receipts for all equipment purchases to monthly billing invoice) Cell phone with photo /video, text and Internet capabilities to be used for ABC field operations/investigations; Miscellaneous accessories $300 One (1) year service plan (12 months at $80 per month) $960 TOTAL EQUIPMENT $1,260 D. Travel Expense/Registration Fees (maximum $2,000) (Registration fee for July 2010 GAP Conference attendees is $200 each) Registration for July 2010 GAP conference. Two attendees @ $200 each $400 Travel, per diem and lodging for the July 2010 GAP conference $1,600 TOTAL TRAVEL EXPENSE $2,000 TOTAL BUDGET ESTIMATE, ALL CATEGORIES $26,318 PAYMENT PROVISION Page .1 of 2 Exhibit B 1. INVOICING AND PAYMENT: Payments of approved reimbursable costs (per Budget Detail attached) shall be in arrears and made via the State Controller's Office. Invoices shall be submitted in duplicate on a monthly basis in a format specified by the State. Failure to submit invoices and reports in the required format shall relieve the State from obligation of payment. Payments will be in arrears, within 30 days of Department acceptance of Contractor performance, pursuant to this agreement or receipt of an undisputed invoice, whichever occurs last. Nothing contained herein shall prohibit advance payments as authorized by Item 2100-101 - 3036, Budget Act Statutes of 2010. 2. Revisions to the "Scope of Work" and the "Budget Detail" may be requested by a change request letter submitted by the Contractor. If approved by the State, the revised Grant Assistance Scope of Work and/or Budget Detail supersede and replace the previous documents bearing those names. No revision cannot exceed allotted amount as shown on Budget Detail. The total amount of the contract must remain unchanged. 3. Contractor agrees to refund to the State any amounts claimed for reimbursement and paid to Contractor which are later disallowed by the State after audit or inspection of records maintained by the Contractor. 4. Only the costs displayed in, the "Budget Detail" are authorized for reimbursement by the State to Contractor under this agreement. Any other costs incurred by Contractor in the performance of this agreement are the sole responsibility of Contractor. 5. Title shall be reserved to the State for any State - furnished or State - financed property authorized by the State which is not fully consumed in the performance of this agreement. Contractor is responsible for the care, maintenance, repair, and protection of any such property. Inventory records shall be maintained by Contractor and submitted to the State upon request. All such property shall be returned to the State upon the expiration of this contract unless the State otherwise directs. 6. If travel is a reimbursable item, the reimbursement for necessary traveling expenses and per diem shall be at rates set in accordance with Department of Personnel Administration rates set for comparable classes of State employees. No travel outside of the State of California shall be authorized. No travel shall be authorized outside of the legal jurisdiction of Contractor without prior authorization by the State. Exhibit B 7. prior authorization by the State in writing is required before Contractor will be reimbursed for any purchase order or subcontract exceeding $2,500 for any articles, supplies;.equipment, or services to be purchased by Contractor and claimed for reimbursement... Contractor. must justify the necessity for the purchase and the reasonableness of the price or cost by submitting three competitive quotations or justifying the absence of bidding. 8. prior approval by the State in writing is required for the location; costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable-publicity or educational materials to be made available for distribution. Contractor is required to acknowledge the support of the State whenever . publicizing the work under the contract in any media. 9. It is understood between the parties that this contract may have been written before ascertaining the availability of appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that would occur if the contracts were executed after that determination was made. 10. BUDGET CONTINGENCY CLAUSE - It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an agreement amendment to Contractor to reflect the reduced amount. GTC 307 EXHIBIT C GENERAL TERMS AND CONDITIONS 1. APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor may not commence performance until such approval has been obtained. 2. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. 3. ASSIGNMENT: This Agreement is not assignable by the Contractor, either in whole or in part, without the consent of the State in the form of a formal written amendment. 4. AUDIT: Contractor agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code § 10115 et seq., CCR Title 2, Section 1896). 5. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor in the performance of this Agreement. 6. DISPUTES: Contractor shall continue with the responsibilities under this Agreement during any dispute. 7. TERMINATION FOR CAUSE: The State may terminate this Agreement and be relieved of any payments should the Contractor fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Contractor under this Agreement and the balance, if any, shall be paid to the Contractor upon demand. 8. INDEPENDENT CONTRACTOR: Contractor, and the agents and employees of Contractor, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State. 9. RECYCLING CERTIFICATION: The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code § 12205). 10. NON - DISCRIMINATION CLAUSE: During the performance of this Agreement, Contractor and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code § 12990 (a -f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a -f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement. 11. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 307 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto. 12. TIMELINESS: Time is of the essence in this Agreement. 13. COMPENSATION: The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided. 14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws of the State of California. 15. ANTITRUST CLAIMS: The Contractor by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor shall comply with the requirements of the Government Codes Sections set out below. a. The Government Code Chapter on Antitrust claims contains the following definitions: 1). "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code. 2). "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554. 16. CHILD SUPPORT COMPLIANCE ACT: "For any Agreement in excess of $100,000, the contractor acknowledges in accordance with Public Contract Code 7110, that: a). The contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and b) The contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department." 17. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. 18. PRIORITY HIRING CONSIDERATIONS: If this Contract includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code § 10353. SAADM [N \HOM EPAGE \GTC- 307.doc Exhibit D Special Terms and Conditions Disputes: Any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Director, Department of Alcoholic Beverage Control, or designee, who shall reduce his decision to writing and mail or otherwise famish a copy thereof to the Contractor. The decision of the Department shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the State a written appeal addressed to the Director, Department of Alcoholic Beverage Control. The decision of the Director of Alcoholic Beverage Control or his duly authorized representative for the determination of such appeals shall be final. and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support.of its appeal. Pending final decision of a dispute hereunder, Contractor shall proceed diligently with the performance of the contract and in accordance with the decision of the State. - 2. Termination Without Cause: Either party may terminate this agreement at any time for any reason upon ten (10) days written notice. No penalty shall accrue to either party because of contract termination. 3. Contract Vali dity: This contract is valid and enforceable only if approved by the Office of Legal Services, State Department of General Services, if required, and if adequate funds are appropriated in Item 2100 -101 -3036, Budget Act of 2010, for the purposes of this program. 4. Contractor Certifications: By signing this agreement, Contractor certifies compliance with the provisions of CCC 307, Standard Contractor Certification Clauses. This document may be viewed at www ols des ca.gov /standard+laneuaae. 5. If the State determines that the grant project is not achieving its goals and objectives on schedule, funding may be reduced by the State to reflect this lower level of project activity.